New build projects in Northern Cyprus

Northern Cyprus is fast becoming a sought-after destination for property investors and buyers looking for high quality properties at prices well below the European average. With a diverse selection ranging from studios to sea view apartments to Mediterranean villas, Northern Cyprus real estate offers a unique opportunity for investment. Current construction projects focus on modern residential, holiday and commercial complexes with high quality amenities, supported by the government to stimulate the economy and meet the increasing demand for property.

This development is reflected in a 20% increase in demand for new builds compared to last year, a trend that further underlines the attractiveness of Northern Cyprus real estate, including attractive locations such as Esentepe, Alsancak and Bellapais. With sea or mountain views, options for homes with gardens or private pools and the increasing popularity of new build villas, this guide provides a comprehensive overview of the best new build projects in Northern Cyprus, a region that is experiencing rapid development and excellent investment opportunities.

Why Northern Cyprus?

Northern Cyprus boasts an impressive 340 days of sunshine per year, making it the warmest winter temperature in the European region. These climatic conditions are ideal for those who want to enjoy year-round sunshine without the extreme cold spells common in many other parts of Europe. In addition, Northern Cyprus is recognised as the fifth safest country in the world, creating a reassuring environment for residents and investors. This safety is further underpinned by an extremely low crime rate, with the region being particularly known for its low burglary and crime rates.

The cost of living in Northern Cyprus is significantly lower compared to many other countries with similar standards of living. This, combined with affordable property prices and an attractive tax regime, makes Northern Cyprus a particularly tempting location for investors and those looking for permanent residence or a holiday home. Property prices have been steadily increasing over the past few years, making the region a smart choice for those looking to increase the value of their investment. Additionally, the fact that Northern Cyprus is predominantly denominated in sterling offers predictable returns to foreign buyers and minimises currency fluctuations.

The unique blend of cultural wealth, economic stability and natural beauty offers a golden opportunity for investors and makes Northern Cyprus an ideal place to buy property. With a wide range of leisure activities, long life expectancies and a host of amenities and facilities to enhance life in the region, it is easy to see why Northern Cyprus is so popular with both long-term investors and those looking to settle down.

New Construction Projects Overview

The Government of Northern Cyprus has taken initiatives to promote economic development by promoting new construction projects. These measures aim to support the construction of new residential and commercial units, which further strengthens the economic dynamism of the region. This strategic decision has resulted in a large number of modern residential complexes and business centers being planned and implemented to meet the needs of the growing population and international investors.

A leading company in this sector is KIBRIZ, which stands out for its expertise in identifying and developing world-class new construction projects. Notable projects include “Natura Residences” in Alsancak, “Marina Village” in Iskele and “Park Residences” in Lefkosa. These projects offer a wide range of property options, from luxurious villas to practical studios, all offering modern comforts and located in some of the most attractive areas of Northern Cyprus.

A special opportunity offered by new construction projects in Northern Cyprus is the purchase of properties “OFF PLAN”. This means that buyers have the opportunity to purchase properties before construction begins or is completed. This option is particularly attractive as the prices for such properties can be 30-60% cheaper than after the project is completed. These attractive price conditions make the property market in Northern Cyprus particularly interesting for investors who are looking for value addition and profitable investment opportunities.

Popular locations for new build projects

Kyrenia, known as Girne, is attracting considerable attention with its picturesque coastline and planned developments, such as the marina project in Lapta. This area offers excellent infrastructure and a variety of leisure opportunities, making it one of the most desirable locations for property investment in Northern Cyprus. In particular, the western areas of Kyrenia, such as Alsancak, Lapta and Karsiyaka, are growing in popularity due to their natural beauty and advanced development projects.

In areas such as Esentepe, Tatlisu and Iskele, which attract mainly foreign buyers, infrastructure may not yet be fully developed, which could affect property prices and limit rental potential. Despite this, these locations offer a long-term investment opportunity through their natural surroundings and planned developments, which is particularly attractive to those seeking a connection to nature while also making a good investment.

To make a smart investment decision, it is essential to research locations carefully and consider factors such as proximity to reputable educational and healthcare facilities, vibrant dining and shopping areas and good transport links. Buying property in Kyrenia not only offers access to improved amenities but also the potential for rapid property appreciation, similar to market conditions in London in the 1980s.

Features and Amenities

Investing in new build developments in Northern Cyprus offers numerous benefits that are particularly attractive to investors and private buyers. One of the standout features is the opportunity to benefit from guaranteed rental income. This guarantee is particularly enticing for investors as it provides a secure and predictable source of income that stabilises the investment and makes it less risky.

Furthermore, many of the new build developments offer flexible payment plans that allow buyers to better plan and manage their finances. This flexibility is particularly beneficial for those who cannot or do not want to pay the full purchase price immediately. The lower initial deposits required to purchase a property in Northern Cyprus also make it easier to enter the property market. These lower deposits make purchasing Northern Cyprus property accessible to a wider range of buyers, thereby encouraging investment activity in the region.

In summary, the features and amenities of new build projects in Northern Cyprus are designed to offer buyers security and flexibility. These aspects are key to the attractiveness of these investments and support the continued growth of the property market in the region.

Investment Benefits in Northern Cyprus

KIBRIZ has established itself as a leader in the Northern Cyprus real estate industry by providing comprehensive financial advice and ensuring that the projects offered correspond to safe locations. This minimizes risks for customers and provides a solid basis for investment. The company also offers off-market projects with interest-free payment plans, which allows customers to purchase exclusive new-build projects at particularly attractive prices and conditions. In addition, customers have the opportunity to personally view the land and the surrounding area of the project, which enables a transparent and trustworthy investment decision.

Another key advantage of the Northern Cyprus real estate market is the attractive pricing compared to other Mediterranean locations. Real estate prices have been rising continuously in recent years, with an annual increase in the cost per square meter of up to 10%. This indicates a strong increase in value and a profitable investment opportunity. In addition, banks in the Turkish Republic of Northern Cyprus offer home loans on favorable terms, typically financing 70-80% of the property value. These favorable financing terms make it much easier to enter the property market.

Last but not least, by using the pound sterling as the dominant currency, Northern Cyprus offers predictable returns and minimizes currency fluctuations for foreign buyers. The government actively supports the development of the property market and offers various incentives for foreign investors, including the opportunity to obtain residency and citizenship of the Turkish Republic of Northern Cyprus. These factors make Northern Cyprus an attractive and safe location for investors looking for ongoing income and high capital appreciation.

Current trends and developments

The property market in Northern Cyprus is showing impressive growth momentum, which is expected to continue in the coming years. Supported by attractive prices, government incentives and plans for new infrastructure and developments, the region remains an attractive location for investors. In 2022, approximately 5,800 properties were sold to international clients, highlighting the growing global interest in this area.

In 2023, the property market in Northern Cyprus is experiencing a significant increase in property values. Prices have risen from £1,000 to £2,500 per square meter within a year. This trend is further driven by the recovering economy, increasing tourism and infrastructure projects. In parallel, a significant change in buyer preferences is evident: interest in once popular studios and one-bedroom apartments is declining, while demand for detached houses is noticeably increasing.

Another indication of the prosperous future of the property market in Northern Cyprus is the huge increase in residential property transaction volume. A 200% increase was recorded in the first half of 2022, highlighting the promising investment opportunities in the region. This development shows that Northern Cyprus continues to remain one of the top destinations for property investment, supported by a stable growth forecast and increasing international recognition.

Legal Considerations

When purchasing property in Northern Cyprus, it is essential to familiarise yourself with the legal regulations that affect the property market. Key considerations include the risks of overvaluation, geopolitical tensions and political changes that may affect residency permit requirements and rental regulations. These factors create uncertainty and could deter foreign investment. In addition, recent political developments in Turkey and Northern Cyprus have raised concerns, particularly proposed changes to residency permit requirements and rental regulations that could affect the ease of purchasing property and rental income.

Purchase Process and Required Documentation

The purchase process in Northern Cyprus requires specific steps that prospective buyers should follow closely:

Budgeting and Advice: First, the budget should be set and an experienced real estate agent consulted.
Creating a Wish List: Prospective buyers should make a list of the desired features of the property.
Selection and Viewing: Selecting suitable properties and viewing them is crucial.
Legal Representation: It is advisable to engage a lawyer to assist in the purchase process.
Obtaining Purchase Permit: A background check is required and an application must be submitted to the Council of Ministers.

Financial and Tax Considerations

The financial aspects of purchasing property in Northern Cyprus include several important fees and taxes that buyers must consider:

Stamp Duty: Current 0.5% of the contract price, payable before signing the contract.
Value Added Tax (VAT): Currently 5% of the contract price, payable upon taking possession.
Transfer Fee: Currently 3% of the contract price, payable after transfer of ownership.
Capital Gains Tax: Paid by the seller, depending on their status as a professional or private individual.

These legal and financial considerations are crucial for a safe and successful investment in the Northern Cyprus property market.

Future Outlook for New Build Projects

Market dynamics and price trends in Northern Cyprus point to a rapid increase in property prices, driven by high demand and limited supply. However, experts warn that this development could lead to overvalued properties, which would deter potential buyers. To promote sustainable growth, proactive measures such as maintaining competitive prices, improving value propositions, diversifying target markets and creating an investment-friendly regulatory environment are suggested.

Despite the challenges and uncertainties, the real estate market in Northern Cyprus is proving to be adaptable and resilient. With strategic planning, adaptable policies and continuous investment, the market is poised for long-term growth and prosperity. In 2024, property prices are expected to continue to rise, with an increasing number of foreign investors from Europe, the Middle East and Asia participating.

The average payback period for real estate investments in Northern Cyprus is around 15 years, with the potential for short and medium-term value increases. Experts forecast an increase in demand and property prices in 2024 and beyond, followed by sustained market growth and eventually stabilization. These developments present significant opportunities for both local and international investors.

Off-Plan New Build Projects, Is It Still Worth It?

The increasing popularity of Northern Cyprus as a property investment destination, attracted by affordable prices, attractive locations and stable economic development, has been discussed in detail in this article. The variety and quality of new build projects offer outstanding opportunities for both private buyers and investors to participate in the growing property market. The development of modern, comfortable living spaces that allow access to a wide range of amenities while offering a high quality of life underlines the long-term benefits of purchasing property in this region.

Given the trends and developments presented, it is evident that the property market in Northern Cyprus remains an attractive investment option, characterized by stable price increases and high demand. The strategic location, pleasant climate and growing economic stability provide a solid basis for investments that promise both short-term returns and long-term value growth. Potential investors and private buyers are therefore well advised to explore the unique opportunities that Northern Cyprus currently offers in order to benefit from this dynamic and evolving real estate landscape.
Given the trends and developments presented, it is evident that the property market in Northern Cyprus remains an attractive investment option, characterized by stable price increases and high demand. The strategic location, pleasant climate and growing economic stability provide a solid basis for investments that promise both short-term returns and long-term value growth. Potential investors and private buyers are therefore well advised to explore the unique opportunities that Northern Cyprus currently offers in order to benefit from this dynamic and evolving real estate landscape.